MicroStrategy Posts $12.5 Billion Q1 2026 Loss on Bitcoin Slide

MicroStrategy Inc posted a $12.54 billion net loss for the first quarter of 2026, the largest in the firm’s history. The deficit reflects a $14.46 billion unrealized markdown on its Bitcoin (BTC) holdings.

Despite the headline loss, the company raised $11.68 billion year-to-date, the biggest US equity issuance of 2026. Bitcoin holdings now total 818,334 BTC, up 22% since January.

Bitcoin Position Expands During Bear Market

MicroStrategy’s digital assets reached a market value of $64.14 billion as of May 3. The average cost basis sits at $75,537 per coin against a May 1 market price near $78,374.

The firm reported a 9.4% BTC Yield year-to-date under its proprietary key performance metrics. That translates to 63,410 added bitcoin and roughly $4.97 billion in illustrative gains for shareholders.

STRC Scales Past $8.5 Billion in Nine Months

STRC, the company’s Variable Rate Series A Perpetual Stretch Preferred Stock, now carries an $8.5 billion market capitalization. Daily trading volume sits near $375 million with realized volatility at 3%.

The instrument raised $5.58 billion year-to-date, a 189% jump. Cumulative dividends across all preferred series total $692.5 million, paid over 23 consecutive distributions without interruption.

Shareholders are voting on a proposal to shift STRC payments to a semi-monthly schedule, which management argues will improve liquidity and price stability.

Software Business Steady

Analytics revenue rose 11.9% to $124.3 million in the quarter. Gross margin held at 67.1%, while cash reserves closed Q1 at $2.21 billion.

Strategy’s next quarterly print will hinge on bitcoin’s price trajectory and continued demand for its preferred stock issuance.